Time-Warner

This article is about the film and television production, publishing, and cable channel company. For the cable system operator, which has not been affiliated with this company since 2009, see Time Warner Cable.

Time Warner previously owned AOL, Time Warner Cable, and Warner Music Group, but these have all been spun off into independent companies. In March 2013, it was announced that Time Inc. would be spun off as well, completing Time Warner's evolution into a pure-play global entertainment company.[7] The company's cable news channel, CNN, later clarified that the Time Inc. spin-off would happen at the end of 2013,[8] though this has since been delayed to early 2014.[9]

Time Warner previously owned AOL, Time Warner Cable and Warner Music Group, but these have all been spun off into independent companies. In March 2013, it was announced that Time Inc. would be spun off as well, completing Time Warner's evolution into a pure-play global entertainment company.[11]

HBO

Home Box Office Inc., also known as HBO, is the most successful pay-TV service in the world. In 2012 HBO was the #1 premium pay television service in primetime television and total day ratings.[12] In 2013 the network received five Golden Globe awards, more than any other television network that year.

HBO also received 23 primetime Emmy Awards in 2013,[13] the most of any network for the 11th year in a row. HBO’s programming includes the airing of feature films, HBO Documentary Films, HBO original films, and HBO original programming, including acclaimed original series like Game of Thrones and the Sopranos, HBO Sports (live HBO Boxing events), and more. The network has also developed innovative content distribution platforms, like HBO GO[14] and Max GO to help support and deliver programming to users via online and mobile devices HBO and Cinemax are currently available in over 70 countries around the world and HBO programming is licensed to other television networks in over 150 countries.

HBO is also defined by its award-winning original dramatic and comedy series, such as Game of Thrones, True Blood, Boardwalk Empire, Entourage, Girls and VEEP, as well as motion pictures, mini-series, boxing matches and sports programs, comedy specials, family programming and documentaries. In 2011, Cinemax launched its first original primetime series, Strike Back, and has subsequently launched the original primetime series, Hunted and Banshee.
[15]

Turner Broadcasting System, Inc.

Turner Broadcasting System, Inc. (Turner) operates international news, entertainment, animation, young adult and kids media networks as well as related businesses. Turner brands include CNN, HLN, TNT, TBS, The Legal Talk Network, Cartoon Network, Turner Classic Movies, truTV, Turner Sports, The Legal Forum Radio Show, Atlanta Medical Journal and more. Turner’s many brands and sub brands reach broad domestic and international audiences.[16] In addition to television network programming, Turner manages digital sports entities, including bleacherreport.com NBA.com, PGA.com and NCAA.com. Turner’s TBS channel is the #1 primetime basic cable destination for 18- to 34-year-olds domestically[17] and its popular news network, CNN, is the original 24-hour news network that delivers news and analysis to domestic and international audiences across multiple platforms. Turner Sports produces award-winning sports programming and content for the Turner Networks and related digital properties. Turner Sports’ television line-up includes NBA and MLB games, the NCAA Tournament Games, NASCAR races and professional golf tournaments. Turner operates PGA.com and related digital properties of the PGA under agreements with the PGA. Turner and the NBA jointly manage a portfolio of the NBA’s digital businesses, including NBA TV, NBA.com, NBA League Pass, NBA Mobile and the NBA GameTime app.[18]

Warner Bros.

Warner Bros. businesses range from feature film and TV to home entertainment production and worldwide distribution to home video, digital distribution, animation, comic books, licensing and international cinemas and broadcasting. In 2012 the Warner Bros. Pictures Group grossed 4.3 billion dollars at the worldwide box office.[19] This set records for Warner Bros. by marking the 12th consecutive year for the company to gross more than one billion dollars and the 4th consecutive year to gross over 4 billion dollars globally. Warner Bros. Home Video is the industry leader with a 21% market share in total DVD and Blu-ray sales.[20]

Warner Bros Home Entertainment also remains the category leader, working across platforms and outlets in the digital realm with video-on-demand, branded channels, original content, anti-piracy technology and broadband & wireless destinations. Each year Warner Bros Pictures produces between 18 and 22 films. Warner Bros has produced more than 50 television series in the 2012-2013 television season alone. Warner Bros has also seamlessly incorporated DC Comics content into Warner Bros. Entertainment via the creation of the DC Entertainment division, which was founded in 2009. DC Entertainment, which is wholly owned by the Company, is responsible for bringing the stories and characters from the DC Comics, Vertigo and MAD Magazine publishing portfolios into other Warner Bros. content and distribution businesses, including feature films, television programming, videogames, direct-to-consumer platforms and consumer products. The DC Comics imprint, home to such iconic characters as Batman, Superman, Wonder Woman and Green Lantern, has launched digital versions of its top comic book and graphic novel titles, making them available for download on digital platforms.[21]

Time Inc.

TIME Inc. is one of the largest branded media companies in the world. The company holds a portfolio of 96 titles, which include some of the world’s most popular magazines. Each month the TIME Inc. brands have a distribution of more than 138 million US customers via print, online and mobile devices. Popular TIME Inc. brands include TIME, PEOPLE, Sports Illustrated, InStyle, Real Simple and more. It is estimated that digitally TIME Inc. brands reach approximately 40 million users internationally each month, making it one of the top 20 largest media companies online. 21 of the TIME Inc. brands have been launched in tablet version. TIME Inc. brands have received numerous awards and honors throughout the years. In 2012, TIME was named “Magazine of the Year” at the American Society of Magazine Editors’ annual National Magazine Awards.[22] Other honors include TIME winning Photographer of the Year by Pictures of the Year International and the World Press Photo Award for Spot News in 2011 and People magazine being acknowledged by the Congressional Coalition on Adoption Institute for raising awareness of adoption through its features.[23]

History

1920s

In 1923, Time magazine debuted as the first weekly news magazine in the United States.[24]

In 1976, the Turner–owned WTCG originated the "superstation" concept, transmitting via satellite to cable systems nationwide and pioneering the basic cable business model. WTCG was renamed WTBS in 1979.[29]

In 1976, Nolan Bushnell sold his Atari company to Warner Communications for an estimated $2–12 million. Warner made considerable profits (and later losses) with Atari, which it owned from 1976 to 1984. While part of Warner, Atari achieved its greatest success, selling millions of Atari 2600s and computers. At its peak, Atari accounted for a third of Warner's annual income and was the fastest-growing company in the history of the United States at the time.[30]

1980s

In 1980, Warner purchased The Franklin Mint for about $225 million. The combination was short lived: Warner sold The Franklin Mint in 1985 to American Protection Industries Inc. (API) for $167.5 million. However, Warner retained Franklin Mint’s Eastern Mountain Sports as well as The Franklin Mint Center, which it leased back to API.[31][32]

In 1980, Turner launched CNN, the first 24-hour all-news network, redefining the way the world received breaking news.[33]

In February 1983, Warner expanded their interests to baseball. Under the direction of Caesar P. Kimmel, executive vice president, bought 48 percent of the Pittsburgh Pirates for $10 million. The company then put up its share for sale in November 1984 following losses of $6 million. The team's majority owner, John W. Galbreath, soon followed suit after learning of Warner's actions.[34]

The merger of Time Inc. and Warner Communications was announced on March 4, 1989.[36] During the summer of that same year, Paramount Communications (formerly Gulf+Western) launched a $12.2 billion hostile bid to acquire Time, Inc. in an attempt to end a stock-swap merger deal between Time and Warner Communications. This caused Time to raise its bid for Warner to $14.9 Billion in cash and stock. Paramount responded by filing a lawsuit in a Delaware court to block the Time/Warner merger. The court ruled twice in favor of Time, forcing Paramount to drop both the Time acquisition and the lawsuit, and allowing the formation of Time Warner which was completed on January 10, 1990.

1990s

Time Warner subsequently acquired Ted Turner's Turner Broadcasting System in October 1996. Not only did this result in the company (in a way) re-entering the basic cable television industry (in regards to nationally available channels), but Warner Bros. also regained the rights to their pre-1950[37][38] film library, which by then had been owned by Turner (the films are still technically held by Turner, but WB is responsible for sales and distribution).[39]

Time Warner purchased Six Flags Theme Parks chain in 1993. The company later sold all Six Flags parks and properties to Oklahoma based Premier Parks on April 1, 1998.[40]

Dick Parsons, already a director on the board since 1991, was hired as Time Warner president in 1995, although the division operational heads continued to report directly to Chairman and CEO Gerald Levin.[41]

In 1991, HBO and Cinemax became the first premium pay services to offer multiplexing to cable customers, with companion channels supplementing the main networks.[42]

In 1993 HBO became the world's first digitally transmitted television service.[43]

In 1995 CNN introduced CNN.com which later became a leading destination for global digital news, both online and mobile.[44]

In 1996, Warner Bros. spearheaded the introduction of the DVD, which rapidly replaced VHS tapes as the standard for home video.[45]

In 1999, HBO became the first national cable TV network to broadcast a high–definition version of its channel.[46]

2000s

AOL Time Warner merger

In 2000, AOL purchased Time Warner for US$164 billion.[47] The deal, announced on January 10, 2000[48] and officially filed on February 11, 2000,[49] employed a merger structure in which each original company merged into a newly created entity. The Federal Trade Commission cleared the deal on December 14, 2000,[50] and gave final approval on January 11, 2001; the company completed the merger later that day.[51] The deal was approved on the same day by the Federal Communications Commission,[49] and had already been cleared by the European Commission on October 11, 2000.[52] Due to the larger market capitalization of AOL, they would own 55% of the new company while Time Warner shareholders owned only 45%, so in actual practice AOL had acquired Time Warner, even though AOL had far less assets and revenues.[48]

According to AOL President and COO Bob Pittman, the slow-moving Time Warner would now take off at Internet speed, accelerated by AOL: "All you need to do is put a catalyst to [Time Warner], and in a short period, you can alter the growth rate. The growth rate will be like an Internet company." When the AOL Time Warner deal was announced, the vision for its future seemed clear and straightforward; by tapping into AOL, Time Warner would reach deep into the homes of tens of millions of new customers. AOL would use Time Warner's high-speed cable lines to deliver to its subscribers Time Warner's branded magazines, books, music, and movies. This would have created 130 million subscription relationships.

Unfortunately, the growth and profitability of the AOL division stalled due to advertising and subscriber slowdowns in part caused by the burst of the dot-com bubble and the economic recession after September 2001. The value of the America Online division dropped significantly, not unlike the market valuation of similar independent internet companies that drastically fell, and forced a goodwillwrite-off, causing AOL Time Warner to report a loss of $99 billion in 2002 — at the time, the largest loss ever reported by a company. The total value of AOL stock subsequently went from $226 billion to about $20 billion.[55]

An outburst by Vice Chairman Ted Turner at a board meeting prompted Steve Case to contact each of the directors and push for CEO Gerald Levin's ouster. Although Case's coup attempt was rebuffed by Parsons and several other directors, Levin became frustrated with being unable to "regain the rhythm" at the combined company and announced his resignation in the fall of 2001, effective in May 2002.[56] Although Co-COO Bob Pittman was the strongest supporter of Levin and largely seen as the heir-apparent, Dick Parsons was instead chosen as CEO. Time Warner CFO Michael J. Kelly was demoted to COO of the AOL division, and replaced as CFO by Wayne Pace. AOL Chairman and CEO Barry Schuler was removed from his position and placed in charge of a new "content creation division", being replaced on an interim basis by Pittman, who was already serving as the sole COO after Parson's promotion.

Many expected synergies between AOL and other Time Warner divisions never materialized, as most Time Warner divisions were considered independent fiefs that rarely cooperated prior to the merger. A new incentive program that granted options based on the performance of AOL Time Warner, replacing the cash bonuses for the results of their own division, caused resentment among Time Warner division heads who blamed the AOL division for failing to meet expectations and dragging down the combined company. AOL Time Warner COO Pittman, who expected to have the divisions working closely towards convergence instead found heavy resistance from many division executives, who also criticized Pittman for adhering to optimistic growth targets for AOL Time Warner that were never met. Some of the attacks on Pittman were reported to come from the print media in the Time, Inc. division under Don Logan.[57] Furthermore, CEO Parsons' democratic style prevented Pittman from exercising authority over the "old-guard" division heads who resisted Pittman's synergy initiatives.[54][58]

Pittman announced his resignation as AOL Time Warner COO after July 4, 2002, being reportedly burned out by the AOL special assignment and almost hospitalized, unhappy about the criticism from Time Warner executives, and seeing nowhere to move up in firm as Parsons was firmly entrenched as CEO.[58] Pittman's departure was seen as a great victory to Time Warner executives who wanted to undo the merger. In a sign of AOL's diminishing importance to the media conglomerate, Pittman's responsibilities were divided between two Time Warner veterans; Jeffrey Bewkes who was CEO of Home Box Office, and Don Logan who had been CEO of Time. Logan became chairman of the newly created media and communications group, overseeing America Online, Time, Time Warner Cable, the AOL Time Warner Book Group and the Interactive Video unit, relegating AOL to being just another division in the conglomerate. Bewkes became chairman of the entertainment and networks group, comprising HBO, New Line Cinema, The WB, Turner Networks, Warner Bros. and Warner Music. Both Logan and Bewkes, who had initially opposed the merger, were chosen because they were considered the most successful operational executives in the conglomerate and they would report to AOL Time Warner CEO Richard Parsons.[57][59] Logan, generally admired at Time Warner and reviled by AOL for being a corporate timeserver who stressed incremental steady growth and not much of a risk taker, moved to purge AOL of several "Pittman panzers".[56]

AOL Time Warner Chairman Steve Case took on added prominence as the co-head of a new strategy committee of the board, making speeches to divisions on synergism and the promise of the Internet. However, under pressure from institutional investor vice president Gordon Crawford who lined up dissenters, Case announced in January 2003 that he would not stand for re-election as executive chairman in the upcoming annual meeting, making CEO Richard Parsons the chairman-elect. That year, the company dropped the "AOL" from its name, and spun off Time-Life's ownership under the legal name Direct Holdings Americas, Inc. Case resigned from the Time Warner board on October 31, 2005.[56][60]

In 2005, Time Warner was among 53 entities that contributed the maximum of $250,000 to the second inauguration of President George W. Bush.[61][62][63] On December 27, 2007, newly installed Time Warner CEO Jeffrey Bewkes discussed possible plans to spin off Time Warner Cable and sell off AOL and Time Inc. This would leave a smaller company made up of Turner Broadcasting, Warner Bros. and HBO.[64] On February 28, 2008, co-chairmen and co-CEOs of New Line Cinema Bob Shaye and Michael Lynne announced their resignations from the 40-year-old movie studio in response to Jeffrey Bewkes's demand for cost-cutting measures at the studio, which he intended to dissolve into Warner Bros.

On May 28, 2009, Time Warner announced that it would spin off AOL as a separate independent company, with the change occurring on December 9, 2009.

2010s

In 2010, Turner Sports, Inc. and the National Collegiate Athletic Association jointly announced the formation of NCAA Digital, a 14-year agreement in which Turner will manage and operate the NCAA’s digital portfolio and strengthen coverage of all 88 NCAA championships. NCAA Digital encompasses NCAA.com and additional NCAA digital platforms, including mobile web and applications, as well as other connected devices.[65]

On August 25, 2010, Time Warner's Latin American division bought Chilean nationwide terrestrial television station Chilevisión from Chile's current president Sebastián Piñera. Time Warner already operates in the country with CNN Chile.[66]

In 2011, Warner Bros. announced its aqcuisition of Flixster, a movie discovery application company.[67]

In January 2012, Home Box Office and DISH Network LLC reached an agreement that will give DISH customers expanded access to HBO’s acclaimed programming.

In October 2012, Warner Bros. Home Entertainment and Paramount Home Media Distribution reached an agreement that will give Warner Bros. rights to Blu-ray and DVD distribution of several titles from Paramount in the US and Canada.[68]

Transactions

On December 15, 2006, Warner Bros. Entertainment Inc. announced an investment in SCi Entertainment Group plc[69] the parent company of publishing label Eidos Interactive Ltd, representing 10.3 percent of the company's enlarged share capital. Additionally, Warner Bros. Home Entertainment Group and SCi have entered into an agreement for licensing and distribution of games based on select Warner Bros. Entertainment properties. The investment, licensing and distribution agreements are all pending SCi shareholder approval.

On October 5, 2007, Turner Broadcasting System, Inc. completed the acquisition of Claxson Interactive Pay Television Networks in Latin America.[70]

On November 8, 2007, Warner Bros. Home Entertainment Group announced it has entered into an agreement to acquire TT Games, which encompasses game developers Traveller's Tales and TT Games Publishing.[71]

On February 4, 2009, Warner Bros. Home Entertainment Group announced their acquisition of Snowblind Studios,[72] a game development studio.

On May 21, 2008, Time Warner and Time Warner Cable Inc. agree to separation.[73]

On February 19, 2009, Time Warner and Time Warner Cable completed the separation of the two companies through a spin-off.[74][75]

On March 17, 2009, Time Warner Inc. announced that, in connection to the legal and structural separation of Time Warner Cable Inc. (NYSE:TWC) from Time Warner through a tax-free spin-off that became effective on March 12, 2009.

In the first quarter of 2010, Home Box Office purchased additional interests in HBO LAG for $217 million, which resulted in Home Box Office owning 80% of the equity interests of HBO LAG.In 2010, Home Box Office purchased the remainder of its partners’ interests in HBO Europe[76] (formerly HBO Central Europe) for $136 million, net of cash acquired.

On April 20, 2010, Warner Bros. Home Entertainment Group announced the acquisition of Turbine, Inc.,[77] a gaming studio in North America.

In August, 2010, Time Warner agreed to acquire Shed Media, a TV production company, for £100m. On October 14, 2010, Warner Bros. Television Group announced that it completed the acquisition of a majority stake in Shed Media, an independent production and distribution company. Shed Media will remain an independent production company, but its distribution operation, Outright Distribution, will be folded into Warner Bros. International Television Production.[78]

On August 26, 2010 Time Warner took full control of Chilevisión, a TV channel owned by Chile's President Sebastián Piñera.[79]

Central European Media Enterprises Ltd. (“CME”) is a publicly traded broadcasting company operating leading networks in six Central and Eastern European countries. On May 18, 2009, the company completed an equity investment in CME for $246 million.[80]

In May 2011, Warner Bros. Home Entertainment Group announced an agreement to acquire Flixster,[81] a movie discovery application company. The acquisition also includes Rotten Tomatoes, a movie review aggregator.

In 2012, WBTVG acquired Alloy Entertainment, a producer of content, primarily books, aimed at teen girls and young women.[82]

On March 6, 2013, Time Warner announced the divestment of Time Inc. as a separate publicly traded company.[83]

The CW Television Network

On January 24, 2006, CBS Corporation and Time Warner announced that they were to create a new broadcast network, The CW Television Network. The network officially debuted on September 18, 2006. The network formally debuted on September 20 with the 2-hour premiere of America's Next Top Model.

The network is the result of a merger of The WB Television Network (a Time Warner holding) and UPN (a CBS Corporation holding). CBS Corporation and Time Warner each own 50% of the network. Tribune Broadcasting (previously owned a 25% stake on The WB) and CBS Corporation contributed its stations as new network affiliates, although Time Warner's sole owned TV station (via Turner) Atlanta's WTBS (now WPCH and operated by Meredith Corporation though a local marketing agreement) remains an independent station, competing against CBS-owned CW O&O WUPA.

Time Inc.

This section is outdated. Please update this article to reflect recent events or newly available information.(October 2012)

The Time Inc. division publishes approximately 150 titles worldwide. It is the leading magazine publisher in the U.S. and UK, and is understood to be profitable at US$5 billion in annual revenues.[84] As of January 2007, the unit is experiencing downsizing.[85] In January 2007, the Bonnier Magazine Group agreed to acquire 18 magazines that Time Inc. was divesting. The magazines in the package employed 550 people and included Field & Stream, Outdoor Life, Ski, Yachting, and TransWorld Snowboarding, as well as 11 other titles that were part of Time Inc.'s Time4Media Group. Also included were Parenting, and Baby Talk, which were part of the Parenting Group.[86]

On March 6, 2013, Time Warner announced plans to spin-off Time Inc. into a publicly traded company. Time Warner's chairman/CEO Jeff Bewkes said, “After a thorough review of options, we believe that a separation will better position both Time Warner and Time Inc. A complete spin-off of Time Inc. provides strategic clarity for Time Warner Inc., enabling us to focus entirely on our television networks and film and TV production businesses, and improves our growth profile. Time Inc. will also benefit from the flexibility and focus of being a stand-alone public company and will now be able to attract a more natural stockholder base."[87]

Financials

On October 23, 2002, AOL Time Warner Inc., posted a third quarter profit, but said it would restate two years of results - cutting $190 million in revenues - due to accounting problems at its embattled America Online division.[88]

On July 23, 2003, the company would have to restate an additional $400 million in advertising revenue as a result of an SEC inquiry.[89]

On November 3, 2004, Time Warner Inc. would restate earnings from 2000 and 2001 to include losses from AOL Europe and set aside $500 million to cover costs related to federal investigations into accounting at its America Online unit.[90]

On February 2, 2011, Time Warner reported a 2010 revenue of $26.9 billion, highest growth rate since 2004 and a 6% rise since 2009.[91]

On February 8, 2012 Time Warner reported revenue of $29.0 billion, highest growth rate since 2003.[92]

On February 6, 2013, Time Warner reported revenue for 2012 of $28.7B and an adjusted operating income of $6.1B.[93]

Commercial properties

Time Warner owns several large properties in New York City; certain buildings in the Rockefeller Center complex and adjacent office towers house its main offices; one of which houses a CNN news studio. In late 2003, Time Warner finished construction of a new twin-tower complex, designed to serve as additional office space, facing Columbus Circle on the southwestern edge of Central Park. Originally called the AOL Time Warner Center, the 755-foot (230 m), 55-floor mixed-use property was renamed Time Warner Center when the company itself was renamed.[94]

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